Custom Choice Student Loans: Reviewed September 2024

Custom Choice Student Loans: Reviewed 2022

The Custom Choice Loan offers fixed- and variable-rate options with no fees and multiple repayment terms.

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Best for:

Borrowers who need a small loan
Borrowers with past-due education balances
Borrowers who want to make payments while in school

With Custom Choice, borrowers can take advantage of both the 0.25% autopay discount plus a 2% principal reduction for graduating with at least a bachelor’s degree.

In this Custom Choice student loan review:

Custom Choice interest rates and loan details
Custom Choice student loan review
How does the Custom Choice Loan compare
How to take out a Custom Choice Loan
How the Custom Choice Loan can improve
Other lenders to consider
Why Credible

Custom Choice interest rates and loan details

If you’re considering a Custom Choice Loan, here’s what you need to know:


Credible rating	4.4
Rates from (APR)	4.24%+ ¹¹
Variable rates from (APR)	5.46%+ ¹¹
Loan amounts	$1,000 to $99,999 annually ($180,000 aggregate limit)¹¹
Loan terms	7, 10, and 15 years¹¹
Min. income	$1
Residency	U.S. citizen or permanent resident
Fees	No application, origination, or late fees
Prepayment penalty	None
Key benefits	0.25% autopay discount¹¹ 2% principal reduction for graduating with at least a bachelor’s degree¹¹ Can use funds to cover past-due balances¹¹
Enrollment	Accepts applications for students enrolled full time, part time, and less than half time during a given loan period Available for undergraduate and graduate students
Cosigner release	Applications accepted after 36 consecutive, on-time principal and interest payments
Loan servicer	American Education Services
Best if	You need a small loan You have past-due education balances You want to make payments while in school
¹¹Custom Choice Disclosures

A Custom Choice private student loan could be best if:

You need a small loan. With a Custom Choice Loan, you can borrow as little as $1,000 up to $99,999 annually. This could be helpful if you need to cover small expenses, such as college textbooks or fees.
You have past-due balances. You can apply for a Custom Choice student loan up to 12 months after you’ve left school to cover past-due balances.
You want to make payments while in school. Custom Choice provides multiple in-school repayment options, which could help you put a dent in your debt and reduce the overall cost of your loan before you leave school.
You are a returning borrower. Qualified returning borrowers will have their new application pre-filled and income verification waived.

Custom Choice student loan review

The Custom Choice Loan is funded by Citizens and comes with fixed- or variable-rate options.

You can borrow $1,000 to $99,999 annually and up to $180,000 in total with a seven, 10-, or 15-year repayment term. These funds can be used to finance undergraduate or graduate school costs — such as tuition, housing, and other living expenses.

Check Out: Private Student Loans and COVID-19: What You Need to Know

How to qualify

To qualify for a Custom Choice private student loan, you must:

Be a U.S. citizen or permanent resident
Undergo a credit check
Provide proof of income (if applicable)

Tip: Many students don’t yet have the credit history to get approved for a private student loan. If this is the case, consider applying with a creditworthy cosigner to improve your chances. This could also help you qualify for a student loan if you have bad credit.

Even if you don’t need a cosigner for approval, having one could get you a lower interest rate than you’d get on your own.

Learn More: Taking Out Student Loans Without a Cosigner

Repayment

Custom Choice offers four different repayment options. These include:

Immediate repayment: Your first payment will be due 30 to 60 days after your loan is disbursed. The minimum payment is $50.
Interest-only repayment: You’ll pay the interest that accrues each month while you’re in school, then make full payments six months after you’ve left school or dropped below half-time enrollment status.
Flat payment: You’ll pay a flat $25 payment while you’re in school. Keep in mind that any interest accrued during this time will capitalize at the time of repayment. This option is available only for loans of at least $5,000.
Full deferment: You can also choose to defer your payments while you’re in school at least half time. Like with the flat payment option, any interest that accrues will capitalize at the time of repayment.

Additionally, borrowers who have a cosigner can apply to release them from the loan after making 36 consecutive, on-time principal and interest payments. Keep in mind that borrowers need to meet underwriting criteria on their own to qualify for cosigner release.

Tip: If you lose your job, the Custom Choice Loan offers unemployment forbearance that can pause your payments in two month increments (maximum of 12 months over the life of the loan).

Check Out: How Long Does It Take to Get a Student Loan?

How does the Custom Choice Loan compare

Here’s how the Custom Choice Loan compares to private student loans offered by two of Credible’s other partner lenders:


Rates from (APR)	Fixed: 4.24%+ ¹¹ Variable: 5.46%+ ¹¹	Fixed: 3.69%+¹⁰ Variable: 6.01%+¹⁰	Fixed: 3.69%+^2,3 Variable: 5.59%+^2,3
Loan amounts	$1,000 to $99,999 annually ($180,000 aggregate limit)¹¹	$2,001* to $400,000	$1,000 up to 100% of cost of attendance
Loan terms (Years)	7, 10, or 15¹¹	5, 7, 10, 12, 15, or 20 (depending on loan type)	5, 8, 10, or 15
Cosigner release?	Applications accepted after 36 consecutive, on‑time principal and interest payments¹¹	Applications accepted after 24 consecutive, on‑time payments	Applications accepted after 24 months of consecutive, on-time payments
Loan servicer	American Education Services	Launch Servicing	University Account Service (UAS)
Best for	Borrowers who need a small loan Borrowers with past-due education balances Borrowers who want to make payments while in school	Borrowers with fair credit Borrowers who want flexible loan terms Borrowers who don’t have a cosigner	Parents who want control over funds Choice of repayment terms Multiple plans for in-school repayment
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available \| ¹Citizens Disclosures \| ^2,3College Ave Disclosures \| ¹¹Custom Choice Disclosures \| ⁷EdvestinU Disclosures \| ⁸INvestEd Disclosures \| ⁹Sallie Mae Disclosures\| ¹⁰Ascent Disclosures

Learn More: Banks That Offer Student Loans

How to take out a Custom Choice Loan

Depending on your needs, the Custom Choice Loan could be a good option to help you pay for college. But before you decide, it’s a good idea to consider your options from as many other lenders as possible — this way, you can find the right loan for you.

With Credible, you can compare your prequalified rates from Custom Choice and other vetted lenders in just two minutes.

Compare student loan rates from top lenders

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Checking rates will not affect your credit

Check Out: Credit Unions to Consider When Taking Out a Student Loan

How the Custom Choice Loan can improve

While Custom Choice offers several perks, it could improve by:

Offering a 20-year loan term: The longest repayment term the Custom Choice Loan provides is 15 years. If you want a 20-year loan term, you’ll need to consider other lenders.
Raising its loan limits: With the Custom Choice Loan, you can borrow only up to $99,999 annually. Custom Choice Loans also have a $180,000 aggregate limit that includes both private and federal student loans. This might not be enough for borrowers attending more expensive programs.

Learn More: How to Get a Student Loan With No Credit Check

Other lenders to consider

If you aren’t eligible for a Custom Choice private student loan, there are plenty of other lenders to consider, including:

Before you take out a private student loan, remember to compare as many lenders as you can to find a loan that works best for you. Credible makes this easy — you can see your prequalified rates from several vetted lenders after filling out a single form.

Find Your Student Loan

Why Credible

Our hope is that this will be a win-win situation for you and us — we only want to get paid if you find a loan that works for you, not by selling your data. This means Credible will only get paid by the lender if you finish the refinancing process and a loan is disbursed.

Additionally, Credible charges you no fees of any kind to compare your refinancing options.

Keep Reading: 5 Steps to Take If You Can’t Afford College

About the author

Taylor Medine

Taylor Medine is a Credible authority on personal finance. Her work has been featured on Bankrate, Experian, The Balance, Business Insider, Credit Karma, and more. She’s also the author of The 60-Minute Money Plan, a self-published intro to budgeting guide for people who hate budgeting.

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